Chodavaram to start cane crushing from Nov 21

Despite farmers’ reluctance to supply sugarcane at the current price, the Chodavaram Cooperative Sugar factory here is gearing up to start the crushing season from November 21. Recently, sugarcane farmers of Chodavaram started agitating for better price for their crop.

The management last season paid Rs 1,800 per tonne sugarcane, but this year farmers are demanding a minimum Rs 2,500 due to increase in inputs cost and labour charges.

“Last season we received 546,000 tonne sugarcane and the company paid the entire amount to farmers with out any dues. The season too we are expecting 550,000 tonnes,” T Poorna Sivaram Prasad, managing director of Chodavaram super factory, told Business Standard.

During last fiscal, the company earned Rs 5.30 crore as profit, and so may announce Rs 100-200 as bonus per tonne sugarcane to farmers apart from the already paid amount Rs 1800 per tonne as minimum price, he added.

“We produced 51,600 tonne sugar last season, of which we have sold 41,600 tonne so far. The remaining stock is at our godowns. We have generated 24,000 tonne molasses and sold 21,000 tonne,” he said.

Last year, the prices were very attractive for molasses. The company got Rs 5,000 on each tone, but this year they have fallen to Rs 1,500 due to government restrictions on molasses usage and transport to other states.

He said though the farmers demand was not viable, if factories do not offer this price, the cane crop would become a burden on farmers and lead to fall in crop area next season. “Hence, we are looking for a via media to solve the current issue,” he said.